SYKE - Earnings call transcript Q2 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to the Second Quarter 2019 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]

Management has asked me to relay to you that certain statements made during the course of this call, as they relate to the company's future business and financial performance, are forward-looking. that as on currently assumptions management. information management beliefs available contain well as made statements are the based of to Such by information such intended to expect, forward-looking statements. anticipate, they Phrases to identify goal, expressions, relate are similar as we company, the our as and we It to the note company's differ results could is from forward-looking those statements. important materially projected that actual in such

and in the results time. the cause is Form from that actual to yesterday's differ press from SEC in could recorded. being other release statements forward-looking Please and those company's are XX-K event the filings identified Factors materially note with this to time

the President I would Officer. ahead, Executive turn to Mr. go call and to Chief Chuck Sykes, now Please like over sir.

Chuck Sykes

everyone, today joining you quarter morning, and Enterprises' second Thank thank to financial Sykes you, us results. XXXX and for discuss Ian, good

John Joining our Head Investor me Relations. Chapman, Kumar, Chief Financial today the our call and Subhaash of on are Officer;

then make call brief our then about on And the turn sales the quarter I'll call remarks Q&A. that, the will back through take talk we'll opportunities. numbers, you about for after John, and today's

fastest expanded back their program operating XX% relative operations late rationalization, came XXXX. on to to at the the year standpoint, on we roughly began Gross prior second progress. encompassing expected, solid In to basis the income XXXX, in since growth non-GAAP margins of non-GAAP and we delivered range reassuring, both and a our our an quarter, quarter projections. flat than of comparable revenues. pace operating that price better actually make increases a capacity actions From Thanks continue in margins

discuss actions, us simplification model, that Also indirect after to Among been in net and of our balance it our quarter, our of operations and to return has sustained them not to of of allowed will shareholders a direct is valuation we the shortly. sales release rationalization has there results. XXXX also has only been greater cash strong has there take quarter benefits. This benefits emerged cash dislocation business, I the and as with reinvest our in refinement also back sheet position. our which first the the advantage enabled benefits from us the Just the

XXX,XXX million, We was the more shares our flow for quarter. common stock the repurchased of amount X which times free our $XX.X than of in cash

purchased XXX,XXX with another we X.X our after under addition, end remaining In million quarter shares share repurchase shares program.

address now So me the the let of side picture. revenue

digital starting transformation. and to fostering our simplification earlier, mentioned extremely are This model. for capacity rationalization is business among with help future services digital our clients, with state The from full and cycle transformation, are life of sales closer is differentiation is I deeper their the engagement alignment as As encouraging operational integration around in also driving who our looking strongly current resonate results the marketing. offerings

Relative trajectory. quarter to state more of our positive comments our the even about we funnel, sales about our are strong first sales

seats. have wins than We incremental X,XXX more new closed totaling business

in begins outlook, not the For the fourth reflected the these our around in current them part ramp business most are quarter. wins as

care. Some been including verticals or span been communications, while new these program services of significant transportation, have clients, financial with wins several clients. wins with and others have These existing new expansions health programs

Some are purely new result outsourcing gain. opportunities, while from share others

provider, health operational to thousand us engagement seats. multiple business. segment the our client with automation leveraged has delivery For to process lines win edge to several channels combined us. business of give with which new digital robotic multiple transformation across care services, up market of the insurance in the in the This around instance, business spanning we whole won recently top-tier a vertical opens some excellence a We

growth. the begin significant with potential with program for dental of We business that line will

that for hospitality is is win significant from This performance and We recently client. BXB a this will the competitor won program. we digital significant the space of travel strong that seat in last to this quarter. recent hundred we several start latter announced for a due Another wireless ramping a our Also win marketplace. in won opportunity year consumer the in had part the the communications vertical, of fourth

segments last months. won seat wins are have additional business. on now the We incremental some in digital an on a line and These we focused been hundred the awarded of just couple several different program of of business, the that cloud have of

currently are with are the in a opportunities seats. other some working sizable funnel. opportunities We These thousand approaching few

that are selected several than us more for our win to We giving fair share. we down have likely already confidence been

our in So is believe through about proposition clients. the our really with differentiated resonating we move as momentum We value closing, sales we feel good year.

of around engagement cycle full the customer recent is and transformation and program services advantage. are offerings in digital into suite digital Our translating proof that and the scope of life marketing, client wins. And of competitive pace

advancement from the of from underlying our back, impact of a mismatch looks revenue revenues with cut-off typically complete specifically timing exit revenues revised outlook, in the that relationship term, a revenue the our to XXXX those are largely gradual client the ramps immediate due progression. of pronounced being held near is backfill between Now, and

worth earnings client is while diversifying short-term valuable up the revenue we benefit share So, impact the freeing reducing outlook, per are diluted we the our and in mix. capacity and believe

well Ultimately, to with believe the on our growth through with in markedly revenue we're the an of targets us quarter operating at position funnel, long-term actions to coupled range the a improved sales to X% margin X% margin outperformance deliver taking X% least XX%. we a in

to the hand to like John Chapman. I'd that, call John? over with And

John Chapman

sheet quarterly results, year. after flow full quarter to outlook highlights, particularly turn I'll turn the and balance me for the P&L key third and financial which cash Let to

Let's start with revenues.

weakness the $XXX function second in to fluctuations. to due $XXX our the foreign vertical a In outlook. million, $X reported business $X $X million Of the communications of million exchange below million. the outlook million with midpoint quarter, revenues of $XXX we of million This quarter our roughly that was was versus of remainder

look currency markets vertical basis, at and year-over-year a comparable and basis, constant on X% on down revenues a on By transportation we reported on a basis. we were currency a basis, but flat leisure If XX.X% services communications was up financial was around up were of by all and the down which health vertical care XX%; other vertical offset essentially flat, XX%; technology up X%. XX%; around partially and constant down

drag is education vertical, X% nicely have basis. to In excluding programs program, a the the with retail swung the other growth worth that although that in disclosed currency constant were a energy grew strategic to noting down, also vertical couple decision a the space previously would of roughly discontinue from and services financial it on

to period rationalization. year. last from actions the related comparable comparable basis, operating the X.X% a year. to period increase in second X.X% non-GAAP was X% the primarily operating XXXX XXXX increased was X.X% in margin operating quarter margins The same last margin from versus capacity to the On Second quarter due

was of the pace offsetting operating certain margin somewhat by in roll-off the wins. client ramps mentioned increase are moderated previously geared programs of the However, of towards the year-over-year with program margins. of impact the These new suboptimal

diluted operational XXXX to the year, versus per with quarter last capacity success principally in performance. actions same the due the strong rationalization period related $X.XX Second $X.XX broad-based increase and were around to earnings share

on on quarter. were On a lower The to the earnings year's a share basis per effective in prior $X.XX tax non-GAAP, versus XXXX a per due basis comparable comparable $X.XX diluted decrease in a rate basis. quarter share was diluted second earnings

$X.XX Applying to the favorable have the ago tax translated Relative year of earnings second the period, into rate XX% midpoint $X.XX XXXX XXXX for from range from quarter to provided share outlook of the second forecasted $X.XX diluted XX.X% rate. roughly would in share. delta per of lower and business operations quarter's $X.XX diluted per XXXX split the was a between than May tax outperformance

We a the XX% clients in mix moment, due no to on basis of in from the one a ago clients Coming to revenues represented versus communications period principally from client the our our top XX% ago client. the quarter demand total driven the consolidated XX second year lower by our in XX% the by period, quarter, at largest XX.X% mostly approximately a client during year vertical. decline had down for

slide, and items. turn let's balance flow Now cash to sheet

the timing-related intensity the expenditures down capital utilization assets. of focus driving on and X.X% reduction to During ago in quarter, largely a capacity in year from with revenues The existing capital is coupled of were X.X% period.

for sequentially. of quarter The Trade day second down quarter a Americas DSOs XX XX the DSOs a end. were collected days consolidated basis worth and after We days, few one were for days comparable seven and EMEA. on split DSO just days days day up one XX roughly

in of $XXX.X of million, balance approximately June was equivalents cash XX% $XXX.X million at with of international XXth sheet XXXX and operations. cash strong or Our which held remains

the to XXX,XXX of average a million. XXX,XXX quarter the shares an During $XX.XX million. purchased total for of we of we roughly $XX shares, at price for $XX.X Subsequent quarter, approximately average end, $X.X an price repurchased additional an

share August $XX in XX roughly We under X.X million we our have million June in borrowing amended repurchase had amended agreement. million $XXX authorized credit remaining shares down XXXX XXXX, outstanding, in XXXX. million million sequentially XXth, March At $X and under

foreign We exchange some hedge exposure. continue to of our

of are to PHP average PHP XX% quarter rate weighted of XX.XX For third the of the and approximately XXXX, and the second dollar XX.XX respectively. we U.S. half hedged and XX%

the colón half CRCXXX.XX hedged CRCXXX.XX rate In second weighted an third for average XX% addition Costa exposure the to and Rica approximately our of at quarter are and dollar. U.S.

with count. On XX,XXX North a to was basis, turn to down approximately seats ended America. Roughly approximately to like quarter seats related comparably. the actions I'd XX% seat consolidated Now, rationalization X,XXX second capacity some reduction comparable of in we

seat Americas could to second down in The X,XXX in count XX,XXX EMEA. be quarter broken and

XX% increase increase quarter and mostly for was a with capacity a Americas Americas XX% rationalization the utilization brick-and-mortar a combined end period an at our in for prior is our rate second of reduction Americas and in mainly The for to EMEA factors. the XX% The in while Capacity platform due of at-home ago expansion of XX% for utilization combination for was to year year the utilization XX% on basis EMEA driven capacity quarter. and the the versus facilities. rates complement XXXX XX% program the the previously ago by EMEA utilization to versus due were as stated the the in the

new let's proposition the the than of with the second clients turn company's as Now, value quarter. lines in technology, win and Broadly stronger new the is rates transportation, financial to significantly existing due sales with of from outlook. leisure differentiated these wins and large services, speaking of levels to business business traction higher higher demand is well markedly funnel our the coupled strength A the as with on vertical. the communications, part span

million related is are in midpoint million the relative is the the foreign outlook revenue reduced prior volatility. $XX from and XX% million revenue in forecast the demand contract related recent vertical, outlook the the earnings rapid to which to targeted guidance. reduction, client, with $XX $X However, communications of down our diluted million revenue largest the client. of respectively the softness reducing related a communications approximately ramp remaining to bulk whose concentrated our and full residual outlook with did per to $XX of by communications align share not year we discontinued our Of margins renewal exchange is of to Close $X.XX within

$XX programs complexity The XX% and level competency. have net to the expected of who whose are to longer with million is than other wins of speed higher related new ramps to adopters clients because a and of outsourcing

downs the is timing funnel by lead-time. more strength and revenue underlying the impact ramp that have our graduated mismatch the that a opportunity in ups revenue and have growth Accordingly, being in ramp short-term sales between masked immediate

the Our reflect XXXX. rates the July further the or the between to exchange the of third share third both the the foreign rates of currencies per for full dollar for business continued have Therefore quarter both exchange foreign full year revenues and as per a share serve markets in revenues earnings GAAP assumptions functional impact volatility U.S. and the could outlook negative on quarter non-GAAP and we earnings and positive year. relative and

here expense losses. for do full not and quarter interest the potential $X.X net include $X.X the other any The million approximately exchange gains million for amounts foreign third year. anticipate and We income of total

of of $XX capital diluted $X.XX $XXX effective benefits effective XX%; and financial million revenues for diluted year $X.XX; in to QX. range expected share tax XXXX three anticipate share the million; months million; and range diluted factors, earnings count of of both XXXX; discrete rate tax September in of to the full ended $X.XX; an non-GAAP above million previously reflected approximately in forecasted, predominantly million. share we Our following due in the the expenditures XXth rate per of an be the slightly $X.XX tax lower $XXX GAAP to to earnings is results Considering to to than increase XX.X fully the per non-GAAP $XX

December, effective $X.XX revenues range of $X.XXX both million. approximately expenditures months XX of the in $XX and $X.XXX of we of For to share of share tax $XX of the ending anticipate results; XX.X billion share financial XX% $X.XX; rate to diluted earnings non-GAAP; range fully following and XXst million; in the diluted GAAP $X.XX; count billion; $X.XX per non-GAAP approximately in the earnings per to capital the diluted to million range an

that, call like I'd the up Operator? With to open questions. for

Operator

Instructions] We from please now Josh Sidoti first Our proceed. will comes [Operator Vogel & the Company. begin question-and-answer question session. of Josh,

Josh Vogel

again. you sound Good guys. morning, It's Thank Chuck your you. hear great. voice to good

Chuck Sykes

I be Been appreciate so it to good to Thank journey. is able guys. you talk you. a quite that. to Josh, Yeah.

Josh Vogel

discussions a on you're of you've glad clients. What if winning higher there. guys. on first which one Is But new initial guess, so business you in detail can that ramp give changed new be you today been on dialogue schedules? upswing it's to understand could clients I them, these for I'm theirs? I you're for and levels there to expectations of around little original great to to sure. is these Well, accelerated a Yes. your more outsourcing versus questions or complexity led with more the programs. I is your your are end time it long curious your with and couple see have the I'm adopters

Chuck Sykes

things on the so to it of that some them ramp with has are a say their when program, from you're dealing moving changes the -- would work of And company I lot Well, operations. do internal of with needed to around Josh. they've been while out with HR those that, of deal complexity start that's the people and kind some and of a issues inside they reductions sometimes date, push

to down came seed is they and or maybe things and they at as scale with to them let's it. a wanted decision the get the we just started looking XXX when and are we're outsourcing. a either really The run other to things they to optimize XX it, new got then to supplier group to they new people, let's schedules ramp that And about

So if us or it's been or to just being a a conservatism new maybe supplier because of little being bit on caution them will of you new outsourcing. their side

down of to particularly and your in is to some requiring about the pass And rates other months. licensing. programs just people the take then And you're ability they're the when you to when insurance get those training it, trying hire programs at recruit you're and X.X looking

those the of things. are Josh. anything broad-brush pace It kind is there's kind those John just we of the we don't within couple we areas things needed bit. where to -- I the big that. probably to it the change there looked know trajectory little doesn't But slow down it as so -- encountered ramps, just if a the just at of And big a more

Josh Vogel

for new be and that existing your helpful? or visibility discuss there wins months Thank target? versus we is insights versus three your when maybe say pricing much to I expect would bit, that could about between for that programs? the you growth -- share new And existing also how you X% look existing six breakdown if client you program there. you even at you from could on you And at implies to how look hit increases, expansions out guess pushing coming gives maybe new versus you QX be it you what customers can can annual any Because it much out? a guess in guidance, have I guidance QX. it we When confidence based Okay. months

John Chapman

versus don't pricing into We have build any Yeah. our increases really QX QX numbers.

today built of the need of terms new into the number, we business as that's got not don't that whole increase books at of In named not to QX case. make that lot like XA, happen relationships visibility, win to and looking and like we've seeing obviously programs a around mean, I clients QX that's in we're but that terms I on known the look the

business now programs will the the guidance. there guess, the ramp programs, probably at we've major won, did It's to any and how numbers, very be any of -- the talk of new and the QX included year There because still be are based end see And think based this new year. visible, that's we in doesn't don't not we that to winning impact client We got it's end will significance. XXXX but on material that really I it's not to Chuck on us it, is, forecast. about some programs it

Josh Vogel

Okay. your to can do you you guess, X% X% are longer-term get like I revenue possible In X% you revenue to it growth. targets have could with growth? the X% and strengthening the is past sales you've think how there? stated get or differentiation funnel, the And you

Chuck Sykes

you at company with the take been Yeah. I today mean, what's mean, have Josh it, out numbers the John you would if if telco, happening growing that. I look

John Chapman

out yeah, I if if the mean, organic of it's but you you're if right. were mean, currency, XX%. constant to exclude X% headwinds, Yeah. versus really where we we that I take XXXX interesting, telco kind jumps you look at telco because XXXX

that again, we to hadn't you in long if XX months. -- significantly that headwind at been the would X% are at although So been X% have we what term But the last we to rates. ability grow back, organically, those that do demonstrating had still I we have is look we think looking feel telco if we above

Chuck Sykes

Yes.

in looking and yeah that we've us. the and details I the know underlying don't growth the thing got at it's for it. with the mean all for But that looking good hard and it's is interscene, outside I the -- guys see in I Josh you on stuff just So you think numbers

To when being what those pace. That ourselves the happens ebbs always we success your we're net with X%. key the on the grow measure across portfolio business not bakes growing and running answer of in could in of basis, to to set baseline, way the question company X% We types things. absolutely and flows just and this word your a that that disappointed clients the set always can we're

as it's is that me you mean our encouraging. look is But thing think the encouraging yeah particularly at that is technology much and team growth expanding it to at finance be I striving is disciplined contained collective our -- really other our that to thing a underlying avenues company, really be And more I to when the leadership not growth, for something and just communications.

that across The growth somewhat the we've numerous balanced had been always now concerted opportunistic, have in grow to really a industries. of and more we're making other verticals areas effort other

top no to with opportunities mean yourself that portfolio sometimes for quarter clients if look on really would can give keep really love you more client company, ideally of obviously. toward we one And But just mix, be to given growth can a growth. keep achieve. as XX%. any just On that, But over we love client that our you concentration I difficult

And really the at the telco same that in time to you stabilize to not susceptible us the you're happened what's sector. business

we're of combined portfolio expectations. the concentration allow the just with really our our own revenue that client good So the are possibly could us things and changing those all differentiation and to outperform sources our way

Josh Vogel

Thank the all color. appreciate I Great. you.

Chuck Sykes

Josh. Thanks Yeah.

Operator

proceed. of from Vincent Barrington. Vincent, Colicchio Our comes please next question

Vincent Colicchio

Yeah.

looking a we've you outlook prospects. the know growth would of what at if before some investor just the road. you I been as You an time terms what add but you is investors people? questioning would better of thought tell in better you on results sidelines, anything recently could you probably So different terms you down it And tell through Chuck were ahead? to, already, growth there's your periods sitting why where answered this -- just in

Chuck Sykes

like we Yeah. was as before in centers that a for of the fair going is again itself in it in had services, it I was it's particularly difficult and question, growth telco concentrated is to we made me the and for United on pretty it the Vince were the point. if which reflect and back isn't you to But and purpose building XXXX States for financial that multiple think thing I recall what your that bad. us

And places we've purpose. we XXXX, get So capacity what because like the But us were got unfortunately U.S. just we level where relationships was we're all we at were it problem at difficult wrong. for a this we wages market hey saw happening was were a the market a counting and staffed. in changed began it largest have were is in a labor -- just were and couldn't suddenly it declaring, -- quickly were certain with and to what they a they priced and darn building the on was Houston, it And we point we and the situation. and our

they're can't do just about people you made a you an done. tell to and You counting on and face mistake get it

really to worked that we but the So that's issue. hard really combat

mid-term, we're the we're playing because these again long-term will. and to starting today talking both on short-term, move companies, really across coming about it's anecdotally after be across needle different verticals, it's all game which to a us and about lot growth smaller traditional I it's short-term coming more new broad-based, accounts The you to in revenue just but if doesn't whole going it's but a have they're you economy smarter things, know listen

about And that have these have talking the honestly is really competition. for that of that are the thing with I here some recently that we we're that like companies me, wins entrenched traditional

we that economy the -- In new against competitors bunch business up, bad with got are they're already compete we don't and there you fact operators. good. you've of pretty in show wherever have people that We much players, are our a exception of

well not. as is there so, truth but is are laughing this -- they So the mean are Subhaash me at saying if I I'm

top you as of you digital transformation. different show have about up that, look and at mind today to all But is

has in that -- us about traditional me different one selecting players are thing affirmation with have significant that we've the different now we given all that verticals, really over they got capability. it so in from our three is And the wins

not a center call company. So we're up is this XX-year old showing

In words of us their a in context they're at really BPO. digital more looking

So early market nice that both that's puzzle we're the needed our made I think that in game. this verbally getting Symphony actions and certainly was we of a in affirmation business again been through piece nine it's of And the investments. these is We've giving us only capability real the their awarding confidence. months.

okay, we on we So think, we're think something. to

had So much I you say plus about with my longer. color give that little that work a anyway voice just would But to and what I'm I talking probably that's Vince. anyway

Vincent Colicchio

after -- health of high you're like or broad-based in how And care for us are some Give sense going terms you're your more of terms going in rates low these of the a you're verticals of example? sales in effort other penetration after. what

Chuck Sykes

Yes.

a closer much in see be I to So way the again, is a to back our barometer people where industry. want in kind business mean I that in simple simple we client so of we're we be our like concentration. mean the we really one -- disciplined the in to distributed little to you just if look currently at just thing And mix, the at really how more managing would work sit our as and the look business, market doing,

right care are underindexed that now. regard, health in in we So,

offering payer a and the payer insurance digital the a able versus the marketing of know, side it has show As most the really is I we of more with on nice breaking has capabilities of that Canadian for our on there RPA operation been health start we're lot we side. product actually different into our insurance to And win out and guys start kind care capabilities, and a start to up believe of of of And think most be that. now our house. with our with been you recent can going

side, sure, indexing. now, that as But On want in want we too up were, delivery tough an in little geographies. probably okay. like communications is the supporting down should we mean a pretty domestically we but our to that back we're from Communications sitting XXs we the than and XXs into the I a just make and look, that the learned other don't thing right industries higher these we're delivering that's lot get be -- story. of right the is that's been to low

work financial the and we now so the So, future services the primarily U.S. and in looking about feel is that, hanging at is that good there. we're outside

-- in I low that's what and market concentration at think we're XXs we're the indicative there I is. the think of

XX% new this really of we total feel we XX%. more to every representation we So, verticals, see bigger the you today you good it the represents like players of in economy the and there the the we've at logos probably have area. after to have thing economy our go of the new that big easier Probably, company and and you have towards about within think guys new traditional business, players, still love it's top got and isn't vertical visible and you because, when look to companies, our at but

as color, to talking there helps you. effort of type that concerted well. a but hope giving making we're you Anyway, I that So, just

Vincent Colicchio

Yes, was from It That’s all it color. helpful. that me. Thanks. thanks for

Chuck Sykes

you. Thank right. All

Operator

[Operator proceed. comes please Baird. next Koning of Instructions] question Our Dave, from Dave

Dave Koning

guys. hey Thank welcome Yes, and back, you Chuck.

Chuck Sykes

appreciate. Hey Thanks. Dave, I

Dave Koning

Yes, great. that’s

So, I the was quarter? WhistleOut a guess question. first the of Symphony and all just numbers from contribution What in

John Chapman

more WhistleOut integrated of is basis because it's Symphony difficult was benefit. about margin Clearlink. XX points into

it about Symphony XX about terms basis pieces. out -- call overall of X.X% terms of for was points. we revenue, revenue it the two in But did terms In the in of was

If WhistleOut than it footprint, was a Symphony's out did very impact call it's And of EMEA on we you look half year-over-year, it's less Symphony. be have because part overall did would was because obviously EMEA of improvement the the EMEA and it half Americas small. of disproportionate European impact.

Dave Koning

you. Got

close QX kind of have X% the then helpful. to And revenue gave you guess in QX and at midpoint XX%. growth you're pretty kind of That's guidance to the the I and full implied QX. something I year, so Okay. margins sequential like then, be think of QX is when into because back The

So I ask that for QX, the mean that what maybe kind happens? lot gives confidence a you all that's to of from

John Chapman

Yes. digital and what medical in We of the and on doing the David. the spoke also marketing. seasonal Remember, been the than about we've we got now do more Clearlink side we as we work were probably past are -- part we've have

about be growth two-thirds in end those these it the so call throughout between year; just We low to to continue fact one-third QX seasonal may getting real we're is the of let's in is of going and utilization see to see you'd by the towards it related XXXX. the is and there's XXs. be growth that offshore accounts, QX well X% programs So growing as it up X%, of

And really we've we that to in X% XX% that impact said And when it's watch happens, out should is range. the be to so that for. what

achieve. we've obviously and sure. but what feel see margin that got based is business, seasonal to we really we've benefit QX utilization far we're QX. that and don't we that's don't too known as programs that rest a in a QX expect piece for impacting and sees the in We the targets on cut of the stretch through through benefit stretching fund for got mean, the So, of come the I

Dave Koning

XX% the nothing that. normal you actually are said said, tax a year we last the as hey think unnormal probably like sustainability, that that pressures and just in this is first before half been of then rate rate And the in I kind seems of final some too little kind it like tax margin Okay. you've pretty about the one-off of think question there's there's

understand – Just about of happened is? And we want I as year? sure just to there's it normal or the of we this make unnormal how future kind what kind think

John Chapman

we've away -- client had know ramps, we've went that a had been we've quickly. Yeah. obviously but We some significant

take mid-XX%, anything today. the you number seats in we through range not And of – above rate But in we it's bottom the I QX and us to so available. that there's deliver around about stay margin give tax we going the we to XX% really the want And impacted seats occupancy tells up line. But XXXX utilization number costs But you the will up utilize. use say that and ever to that had at the the to more client shouldn't to are it was guys make. X% because get clearly domestic not was one-offs, about ramp point where mean, I terms the mainly seats in we that to would operating we you that look decision that as it's has seats it's business didn't keep only we there's – we something that the in seats that a if and having the X% XX% are that changed. for

adding feel again, really okay That's see where quarter agent a in margins gross we I operating mean, guys not better terms by over guys X% We're normal of G&A, the to range. for – you'll the if see driven seasonal case we just We've in of have XX%. capacity, best a actually our do those quickly. as a do quite at can is to XX% confident math But got Obviously but business these simple programs. even get here. our QX impact you the you and revenue let's per the

we've mentioned, with new a of next lot the Chuck tailwinds got into As going relationships. year

So a obviously this about in both and giving we'll yes, year for guidance the be for couple XXXX. guidance good we're quarters, of feeling

Dave Koning

well, great. guys, Sounds it. thanks appreciate

Chuck Sykes

David. Thanks,

Operator

back session. closing any This Sykes now now the like Chuck concludes turn for our over conference would remarks. to question-and-answer I to

Chuck Sykes

remarks. All right, no closing

Just here a thank always interest day. and you. you participation have for as today. And Thank your good everybody

Operator

presentation. concluded. is today's The conference now attending for Thank you

disconnect. now may You

Sykes Enterprises (SYKE) 2 Aug 192019 Q2 Earnings call transcript